Arvind Q2 net up marginally by 5%

Revenues rise 5.6% to Rs 1325 crore as compared to Rs 1,254 crore during the corresponding period last year

Ahmedabad-based integrated textile and branded apparel player, Arvind Limited registered a marginal rise in its net profit for the second quarter ended September 30, 2012 of close to 5% at Rs 65 crore, as against Rs 62 crore for the previous quarter of last fiscal 2011-12.

The company's revenue for Q2 of FY 2012-13 also rose by 5.6% at Rs 1325 crore as compared to Rs 1,254 crore during the corresponding period last year.

However, despite a dull domestic apparel retail market for much of the second quarter, Arvind Limited posted a growth of 6% in its brands and retail business segment. 

 

"The business scenario is moderately bullish as international demand is strong. We are satisfied that margins in both textile and brands and retail business are now witnessing upward movement," said Jayesh Shah, director and CFO, Arvind Limited while commenting on the results.

Segment-wise during the quarter, textile business grew by 13%, driven by 25% volume growth in shirting fabric and 4% volume growth in denim fabric.

With the upcoming festive season of Diwali, the company, which recently acquired Indian business operations of international brands like Debenhams, Nautica and Next, is bullish about higher growth in the brands and retail segment. 

"We see further volume growth in our shirting fabric and much better third quarter for brands and retail business as Diwali festival this year is falling in the month of November," Shah added.